What is the RP-5217 form and why is it important?
What is RP-5217? RP-5217 can be used in cases of a sale, gift, inheritance, or distribution pursuant to a court order. RP-5217 guarantees that the transferee of the title is properly taxed in respect to transfer tax.
If you have dealt with this type of real estate transaction before you know how important this form can be. RP-5216 will confirm that all applicable taxes have been paid. This will also ensure that you and your seller are protected from any future tax repercussions arising from an "arms length" sale. The RP-5217 form is essential in this scenario and must be completed before transferring the title.
When negotiating deals like these, it is important to get help from a qualified local real estate attorney. The attorney will help you to determine the applicable taxes and what they will cost. For example, if in the purchase of a property, the buyer agrees to pay the transfer taxes that are normally paid by the seller, then those taxes must be included in the sale price of the property and thereby increasing the amount of consideration subject to the transfer taxes. The title company can ensure that all transfer fees are properly calculated.
This form is required in order to accompany the deed at your home when it goes to recording. Without the RP-5217 the deed will not be accepted for recording which could potentially bring your ownership of real estate into question. If it turns out that your current title doesn't account for all correct fees and payments made during the sale, you could be held responsible not only for the full amount of taxes, but also penalties, interest, and interest.
When you purchase realty, there are several steps that must be taken to transfer ownership from previous owners to new owners. If these steps are not correctly accounted for, they can be confusing. It is crucially important that you double-check all of the work done in a real estate transaction, even if it is done by the other party. The fact that you have professionals on your team doesn't make it any less important to double-check the work of the other parties who are buying or selling your property. While a real estate attorney may be able to help with any issues that might arise after closing, it's better to prevent them from happening. It is important to secure a MacGregor Abstract title company if you are the seller. This will ensure that your paperwork is correct and transfers from the old owners (you) into the new owners (buyers).
Title insurance companies will issue a Title Insurance Policy for property transfers. This insurance policy, which protects both buyers from potential hazards or problems with the title of the property being transferred, is one of the many steps to ensure your investment is protected as well as giving you the reassurance that everything was done properly.